Tinubu: Nigeria Reduces Dependence on Oil Revenue, Targets More Diversified Economy
President Bola Ahmed Tinubu has said Nigeria has significantly reduced its dependence on crude oil revenues, stressing that his administration will further strengthen efforts to build a diversified economy driven by agriculture, manufacturing, and the digital and creative industries.
The President spoke on Tuesday in Abuja at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), where he was represented by Vice President Kashim Shettima.
Tinubu said improved collaboration among security agencies, oil operators, host communities and the NUPRC had contributed to more stable oil production, while creating a more favourable environment for investment in the upstream sector.
According to him, investors who previously moved away from Nigeria in search of better opportunities are returning, with the country ranking as Africa’s leading destination for upstream investment for two consecutive years.
“These gains matter well beyond the oil and gas industry. Under the Renewed Hope Agenda, we are building a diversified economy in which agriculture, manufacturing, the digital and creative industries all play their part,” Tinubu said.
He noted that while dependence on oil revenue had already declined, petroleum resources would continue to play an important role in supporting energy supply, foreign exchange earnings and government revenue.
“We have already reduced our dependence on oil revenue, and we intend to go further. But a diversified economy still needs energy, foreign exchange and investment, and that is where this sector serves the nation,” he said.
The President said the administration would focus on using petroleum resources to support broader economic development, rather than allowing the country to remain dependent on the sector.
He also described gas as a major priority, declaring that “this is the decade of Gas,” while pledging to expand gas supply for electricity generation, industries and clean cooking.
“With the largest gas reserves in Africa, we will expand gas supply for power, industry and clean cooking, reduce flaring and methane emissions, and grow renewable energy alongside it,” Tinubu said.
He added that Nigeria would pursue an energy transition suited to its development needs while meeting its climate commitments without compromising energy access.
On investment, the President said the government would continue to improve the regulatory environment and ensure that operators benefiting from incentives meet their obligations on work programmes, local content, environmental protection and host communities.
He also charged the NUPRC to remain transparent, independent and efficient, particularly by ensuring clear processes, reliable timelines and effective coordination with other government agencies.
Tinubu described the Petroleum Industry Act (PIA) as a strong foundation for reforms in the sector, but acknowledged that investors had raised concerns over high costs, lengthy contracting processes and uncertainty surrounding fiscal terms for complex projects.
“Investors told us plainly that good rules were not enough while costs remained high, contracting took too long and fiscal terms for complex projects were uncertain. We listened, and we acted,” he said.
The President described NUPRC as a critical bridge between government policy and investment, urging the Commission to approach its next five years with the same commitment, integrity and sense of purpose.
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Minister of State for Petroleum Resources, Oil, Senator Heineken Lokpobiri, said the NUPRC had recorded significant achievements in its first five years, attributing the progress to reforms under the Tinubu administration.
Lokpobiri noted that Nigeria, with crude oil production of about 1.7 million barrels per day and more than 37 billion barrels of oil reserves, still required increased investment, additional licensing rounds and intensified exploration to fully unlock its petroleum potential.
He urged the Commission to sustain its reforms, eliminate bureaucratic bottlenecks and adopt decisive regulatory measures capable of attracting more investment.
Chairman of the NUPRC Governing Board, Senator Magnus Abe, said the establishment of the Commission under the PIA demonstrated Nigeria’s progress in reforming the petroleum industry.
Abe commended the management and staff of the Commission for their commitment to transparency, professionalism and operational efficiency, while attributing its progress partly to the regulator’s independence from political interference.
Similarly, Chairman of the Senate Committee on Gas, Senator Jarigbe Agom Jarigbe, said the PIA reforms had improved transparency, regulatory certainty and investment prospects in the oil and gas industry.
Representing the Minister of State for Petroleum Resources, Gas, Ekperikpe Ekpo, the Permanent Secretary in the ministry, Mrs Patience Oyekunle, said the establishment of NUPRC had strengthened the separation of policy, commercial and regulatory responsibilities in the petroleum sector.
She called for continued efforts to maximise Nigeria’s gas resources and strengthen investor confidence through regulatory excellence.
The anniversary also featured awards to former Directors of the Department of Petroleum Resources (DPR), which was transformed into the NUPRC, in recognition of their contributions to reforms in Nigeria’s upstream petroleum sector.
The event brought together government officials, National Assembly members and stakeholders in the petroleum industry to review the NUPRC’s five-year regulatory journey and chart a course for increased investment, production and value creation in the sector.
Tinubu: Nigeria Reduces Dependence on Oil Revenue, Targets More Diversified Economy